Existing home sales have shown signs of growth for the month of May according to a recent report from NAR, the National Association of Realtors. All of the 4 regions across the country experienced a growth in sales with the Northeast seeing the largest increase.
Total existing home sales of properties including single families, condos, coops and townhomes had jumped up by 2.5% in May to an annual rate of 5.34 million. Lawrence Yun, NAR’s chief economist, said the jump shows that consumers are eager to take advantage of the favorable conditions. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
The median existing price of homes had also increased for the month of May up 4.8% which is now the 87th consecutive month for gains.
Housing inventory has increased from the month before in April and was also up 2.7% over last year at this time period. Unsold inventory is at a 4.3 month supply at the current pace.
Though inventory is up, the months’ supply numbers remain near historic lows, which has a direct effect on price, according to Yun. “Solid demand along with inadequate inventory of affordable homes have pushed the median home price to a new record high,” he said.
Homes remained on the market for 26 days in May which was surprisingly up from April at 24 days. This was the same number of days on market however from May of 2018. Fifty-three percent of properties sold in May were on the market for less than 30 days.
Lastly, home loan rates had shown a decline for May which according to Freddie Mac, the average commitment on a 30 year fixed loan was 4.07%. This is down from 4.14% in April and astonishingly lower than the 4.54% average for all of 2018.